Project Cost Management Quiz

Which of the following best defines project cost management?

• The process of determining resource allocation only

• The process of ensuring a project is completed within the approved budget

• The process of shortening project schedules

• The process of eliminating risks

Which of the following is NOT a process in project cost management?

• Estimating costs

• Controlling costs

• Determining the budget

• Performing risk audits

What is the main output of planning cost management?

• Basis of estimates

• Cost management plan

• Cost forecasts

• Change requests

Which type of estimate provides cost information early, often 3-5 years before project completion?

• Budgetary estimate

• Definitive estimate

• Rough Order of Magnitude (ROM) estimate

• Analogous estimate

The accuracy range of a Rough Order of Magnitude (ROM) estimate is typically:

• -10% to +25%

• -25% to +75%

• -50% to +100%

• -200% to +50%

A definitive estimate is usually prepared:

• During project initiation

• Early, 1-2 years before completion

• Later in the project, less than 1 year out

• After project closure

Which estimating technique uses the cost of similar past projects?

• Bottom-up estimating

• Analogous estimating

• Parametric estimating

• Three-point estimating

Bottom-up estimating is also called:

• Top-down costing

• Activity-based costing

• PERT costing

• Expert judgment

Three-point estimating involves:

• Expert assumptions only

• Optimistic, pessimistic, and most likely estimates

• Past data only

• Monte Carlo simulation exclusively

Parametric estimating is most reliable when:

• Parameters are vague

• Historical information is accurate and quantifiable

• The project is brand new

• Cost data is unavailable